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JAR-927 tour company uses two measures of activity, routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula for
JAR-927 tour company uses two measures of activity, routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula for tour operating costs is $56,860 per month plus $2,884 per route plus $14 per passenger. The company expected in August to perform 86 routes and serve 255 passengers, but the actual activity was 94 routes and 265 passengers. The actual tour operating costs in August was $305,100. The spending variance for tour operating costs in August would be closest to: Multiple Choice $3,354 Favorable $26,566 Favorable $3,354 Unfavorable $23,212 Favorable $26.566 Unfavorable
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